Food Franchising In India
Food Franchising In India
About 17 per cent of food and beverages in the organized sector is operated by franchisors. There are about 1,200 franchisors at present of which 150 are exclusively dealing in food and beverage retail. About 75 per cent of these are of Indian origin and the rest are international. There are around 18,000 franchised restaurants in the country as compared to only 2,500 run by company-owned entities.
The study further says that recent trends indicate that the franchise system can grow strongly in times of recession. While other sectors are laying off people, franchisors are recruiting new franchisees. They also need more professionals for planning and managing their network growth strategy.
Today, the total number of people employed in the franchise system is estimated at 9.5 lakh - 7.5 lakh are permanent full-time employees, 80,000 are permanent part-timers and casual workers are at 1.2 lakh.
According to the study, the Delhi National Capital region (NCR) boasts of having 408 brand franchisors. Western India, with 386 brands - the bulk of them from Mumbai and Gujarat - occupies the second spot, followed by southern India (250 brands, mostly in Bangalore and Chennai). The eastern region brings up the rear with 58 brands, the majority of them concentrated in Kolkata.
It is noted that the majority of the franchising activities occur in the northern states, especially in Delhi and NCR region, followed by the western region - Mumbai, Pune, Surat, Ahmedabad, Jaipur, Udaipur, Indore etc. The per capita spend in northern India is much higher than in other states and this drives the franchisers to expand their operarations in this region. The central and southern cities like Kochi, Chennai,Coimbatore, Hyderabad,Vizag and Bangalore are indisputable destinations where franchisers want to have their footprints but there is relatively less activity in the east and north eastern states except Kolkata, Guwahati, Patna and Bhubaneswar.
The study estimates that the Indian franchising sector is growing at 38 per cent per annum with a market size of $72 billion. It is expected to reach $20 billion by 2013. Education and retail are two important areas where franchising is prominent.
The study forecasts that the Indian food service entrepreneur is ready with massive expansion plans which will help the sector grow at 48 per cent in the next two years. International food service brands are looking at the Indian market as a profitable investment destination. The size of the Indian food service market is at $11 billion but organized players enjoy less than 8 per cent of the market. There are 10 million street vendors in India, of which six million sell ready-to-eat stuff.
In India, consumer food services' value sales grew at a strong 20 per cent in 2007-08, second only to that of Vietnam and Indonesia.Hence a strong case in point of the franchise predominance in the franchising sector in food.Hence if you are in food and are seeking to expand your business across India, start franchising.
Food Franchising In India - To learn more about this author, visit Amit Nahar's Website.
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I was going through this report bought out by a joint study done by the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Confederation of Indian Food Trade & Industry (CIFTI), which says that over 30 per cent of new food outlets which are coming up in almost all the cities across the country are through the franchise system.
About 17 per cent of food and beverages in the organized sector is operated by franchisors. There are about 1,200 franchisors at present of which 150 are exclusively dealing in food and beverage retail. About 75 per cent of these are of Indian origin and the rest are international. There are around 18,000 franchised restaurants in the country as compared to only 2,500 run by company-owned entities.
The study further says that recent trends indicate that the franchise system can grow strongly in times of recession. While other sectors are laying off people, franchisors are recruiting new franchisees. They also need more professionals for planning and managing their network growth strategy.
Today, the total number of people employed in the franchise system is estimated at 9.5 lakh - 7.5 lakh are permanent full-time employees, 80,000 are permanent part-timers and casual workers are at 1.2 lakh.
According to the study, the Delhi National Capital region (NCR) boasts of having 408 brand franchisors. Western India, with 386 brands - the bulk of them from Mumbai and Gujarat - occupies the second spot, followed by southern India (250 brands, mostly in Bangalore and Chennai). The eastern region brings up the rear with 58 brands, the majority of them concentrated in Kolkata.
It is noted that the majority of the franchising activities occur in the northern states, especially in Delhi and NCR region, followed by the western region - Mumbai, Pune, Surat, Ahmedabad, Jaipur, Udaipur, Indore etc. The per capita spend in northern India is much higher than in other states and this drives the franchisers to expand their operarations in this region. The central and southern cities like Kochi, Chennai,Coimbatore, Hyderabad,Vizag and Bangalore are indisputable destinations where franchisers want to have their footprints but there is relatively less activity in the east and north eastern states except Kolkata, Guwahati, Patna and Bhubaneswar.
The study estimates that the Indian franchising sector is growing at 38 per cent per annum with a market size of $72 billion. It is expected to reach $20 billion by 2013. Education and retail are two important areas where franchising is prominent.
The study forecasts that the Indian food service entrepreneur is ready with massive expansion plans which will help the sector grow at 48 per cent in the next two years. International food service brands are looking at the Indian market as a profitable investment destination. The size of the Indian food service market is at $11 billion but organized players enjoy less than 8 per cent of the market. There are 10 million street vendors in India, of which six million sell ready-to-eat stuff.
In India, consumer food services' value sales grew at a strong 20 per cent in 2007-08, second only to that of Vietnam and Indonesia.Hence a strong case in point of the franchise predominance in the franchising sector in food.Hence if you are in food and are seeking to expand your business across India, start franchising.
Food Franchising In India - To learn more about this author, visit Amit Nahar's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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